Federal Bank reports 9% rise in Q3 profit to Rs 1,041 crore on rising business income – News Air Insight

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Private sector Federal Bank on Friday reported a 9% rise in third quarter net profit at Rs 1041 crore against Rs 955 crore in the year-ago period, backed by rising business and core income.

The bank’s net interest margin for the quarter improved sequentially to 3.18% from 3.06% in the preceding quarter.

Net interest income stood 9% higher at Rs 2,653 crore, while other income rose 20% at Rs 1100 crore. Operating profit was 10% higher at Rs 1729 crore.

The Ernakulam-headquartered lender said its NII and operating profit for the quarter reached all-time highs.

“Our emphasis will remain on consistency and quality of earnings rather than headline growth. We believe this approach positions the bank well to deliver sustainable performance across market cycles,” managing director KVS Manian said.


The bank’s gross non-performing assets ratio declined to 1.72% at the end of September from 1.95% a year back. Net NPA ratio stood at 0.42% against 0.49%.

Its advances rose 11% year-on-year to Rs 2.56 lakh crore, led by a 9% expansion in corporate and institutional banking portfolio to Rs 94866 crore. Its retail portfolio grew a modest 1% to 69186 crore.The bank’s deposits rose 12% year-on-year to Rs 2.98 lakh crore with the share of current and savings account deposits rising 191 basis points to 32.07%.

The bank’s share price jumped 9.5% to Rs 270.35 on BSE, reacting to the quarterly earnings, which was announced during the market hours.



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